The timeline for Texas sports betting has not changed. This is to say, the timeline for legal sports betting in Texas does not exist.
Just ask Governor Greg Abbott.
Speaking with CBS News in Texas, The Lone Star State’s governor confirmed that he will not be advocating for the legalization of sports betting or casino gaming. “I’m not there yet,” he said. “I’m simply not there yet.
Governor Abbott’s stance will not come as a surprise to many. He has never ranked among the strongest proponents for Texas sports betting legalization. Past comments have suggested that he’s outright against it.
Still, more recently, he seemed to warm up to the idea. Earlier this year, in fact, Governor Abbott seemed remarkably open to legislation that would legalize Texas sports betting and casinos.
“I don't have a problem with online sports betting,’ he told Texas Take podcast hosts Jeremy Wallace and Scott Braddock back in February (via ABC 8). “I would be shocked if there's not some Texans who do it already. It's a very common practice and it seems to be part of the entertainment that goes along when you're watching a football game, especially pro football, or other types of sports.”
Many glommed onto these sentiments, believing they were proof that Texas would soon join the ranks of sports betting in the United States. And to be fair, this optimism is overstated, even without the benefit of hindsight. Governor Abbott is far from the only opponent of Texas sports betting. His February comments also do not prove that he actively supports it. He is merely acknowledging that it already happens, and that he’s not irreversibly against the idea.
Naturally, this raises the issue of what it will take to convert him to a supporter. Or perhaps the biggest question is: Will he ever fully support Texas sports betting legalization?
Governor Greg Abbott Expands on Texas Sports Betting Stance
CBS News dutifully asked why Governor Abbott is “simply not there yet” on the Texas sports betting issue. Here is what he had to say in response:
“Because we've seen increasingly problems that go along with gaming. Whether it be addiction or whether it be things that are happening in sporting events and athletes who are on the take. And so, there have been more red flags raised. That caused us to have to pause, step back, take a look at this and make sure that we wouldn't do anything that would be harmful, either to the people of the state of Texas, the culture that we have in the state, or to sporting events that we have in the state.”
This is far from an unreasonable stance for Abbott to assume. Multiple studies have shown that sports betting legalization leads to an uptick in reported problem gambling. Additional studies also suggest that sports betting and casino gaming contribute to financial stability, such as people putting less money into their savings or 401k accounts.
Addressing this issue will be critical to swaying holdout states such as Texas. Heck, it’s crucial to states that already have legal sports betting. Really, the various issues just generally need to become more of a country-wide focus.
To borrow a phrase from Abbott, we are “simply not there yet.” Certain states such as Ohio and Massachusetts are attempting to pass legislative measures that could help. Select state officials in these markets have also expressed regret for their support of previous sports betting parameters.
Even so, this is not a mainstream focus. And it probably will not be until a few states take more dramatic measures. From there, we might see more on-the-fence markets, such as Texas, cozy up to regulated sports betting legislation.
The Problem with Governor Abbott’s Stance on Sports Gambling
Of course, we must also acknowledge the other side of this issue. And it is arguably the more awkward side: Governor Abbott’s stance on Texas sports betting may not actually matter.
This goes for all sports betting opponents. It also applies to sports betting supporters. Because residents of The Lone Star State have alternatives at their disposal—more workarounds than ever before, actually.
Crossing state lines to place wagers elsewhere is on the table. Ditto for using offshore betting sites. And now, we must add sports prediction markets to the equation.
For anyone unfamiliar with sports prediction markets, they are what operators term event-based contracts on yes-or-no propositions. As one example, customers can invest in the Dallas Cowboys winning the Super Bowl. If Big D gets a ring, people who purchased a stake in the outcome receive a payout based on a line that was determined by how the rest of the public viewed that hypothetical.
This sounds eerily similar to sports betting because it is eerily similar to sports betting. Prediction-market operators argue that their transactions are derivatives, not unlike the stock market, because users are not pitted against The House. This, in turn, subjects them to federal oversight rather than state licensing.
So far, this interpretation of laws is holding up. Prediction markets are up and running in all 50 states. That includes The Lone Star State. Ergo, this is a legal workaround to Texas sports betting. The primary difference is, the state doesn’t get to regulate it—or, equally important, tax it the same.
That puts Texas in a weird spot. Their sports betting laws aren’t actually preventing sports bets. They also aren’t capitalizing on sports bets. And now, because prediction markets exist, they may not have the same leverage to tax sportsbooks if they do legalize gaming.
Does this make it less likely Texas sports betting gets legalized in the near term? More likely? Does it change absolutely nothing? Frankly, your guess is as good as ours. And anyone else’s for that matter.
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